Attorney/Collection Fees part of lease

Attorney/Collection Fees part of lease

Investor · Madison, WI · Member since 2017 · 19 posts · 21 votes

Relative newbie here.  I'm using a lease that includes language obtained from the BP lease documents I downloaded a couple years ago.  Potential tenant is asking me to change the following.  Yes or No to the change?  If I say no, do I just say "No" and leave it at that?  Should I be giving an explanation why I'm not willing to change it?  Thanks!

Language from my lease:

ATTORNEY/COLLECTION FEES: In the event that legal action must be taken against Tenant to enforce any part of this Lease or applicable laws, Landlord shall be entitled to its recover costs and reasonable attorneys' fees incurred in connection therewith. If Tenant becomes delinquent on rent or fees due, Tenant agrees to pay all landlord/agent charges including 18% annual interest.

Part they want changed:

ATTORNEY/COLLECTION FEES: In the event that legal action must be taken against Tenant to enforce any part of this Lease or applicable laws, Landlord shall be entitled to its recover costs and reasonable attorneys' fees incurred in connection therewith with collection actions. If Tenant becomes delinquent on rent or fees due, Tenant agrees to pay all landlord/agent charges including 18% annual interest.

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  • Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
    6y

    Hi @Amy Canfield and welcome to BiggerPockets!

    This is a classic power-move by a tenant who believes they are "in charge."

    We spent a considerable amount of time and money developing our Lease Agreement, and we're not going to make any changes on behalf of one tenant. If they are not happy with the Agreement, they are welcome not to sign it. But, then they won't be moving into our property.

    The irony here (and I'm no attorney), appears to be that the changes they're asking to be made don't seem to really help them as the tenant in any significant way! They just make the paragraph vague and overly broad.

    I think they're testing you to see who is in charge.

    I encourage you to be in charge here. Otherwise, they will be, both now and for the duration of the lease (and possibly beyond!).

  • Attorney · Nashville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Amy Canfield 

    Ask them to define what they mean by "collection actions." It seems to introduce an ambiguity that I don't think will help either party. 

    Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

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